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HomeMy WebLinkAboutTimes-Advocate, 1986-07-23, Page 22Popp 6A Timis -Advocate, July 23, 1986 Township Financial Statements of SpicerMacGillivray I m of ti: salonl beards asd the County of ro• are reflected iny the "Consolidated Statement of Operations" but with no effect on the Municipal Fund Balances since the total ie shown as • Chartered Accountants deduction. 10 THE SQUARE P.O. PDX Irl 000ERICH• ONTARIO NIA )Z2 +c. .►unuc .ao .ux+i AUDITORS'`REPORT To the Members of Council, Inhabitants, and Ratepayers of the Corporation of the Township of Stephen We have examined the consolidated balance sheet of the Corporation of the Township of Stephen es at December 31, 1985, and the consolidated statement of operations tor the year the. ended. Our examination was made In accordance with generally accepted auditing standards, and accordingly included such teats and other procedures as we considered necessary In the circumstances. In our opinion, these consolidated financial statements present falsly the financial po ition of the Corporation of the Township of Stephen as at December 31. 1985, and the results of its operations for the year then ended to accordance with the accounting principles prescribed for Ontario Ilunicipalttlev applied on a basis consistent with that of the preceding year. Godertch, Ontario March 24, 1986 Licence No. 1203 ASSETS UNRESTRICTED Cash Taxes receivable User charges receivable Accounts receivable RESTRICTED Cash Due from Ministry of Environment-O.W.R.C. Investments Long term receivables - 0.H.R.P. loses yam/ rt.•.�/ p„r. i c (, i ✓,�s:'y HARTERED A COUNTAHJS 1985 $ 91,682 461,436 64,071 182,399 799.588 23,805 10,254 34.059 CAPITAL OUTLAY FINANCED BY LONG TERM LIABILITIES AND TO BE RECOVERED 1N FUTURE YEARS • 52,931 LIABILITIES Temporary loans Accounts payable and accrued liabilities Other current liabilities 1984 $ 108,400 406,598 49,657 215.513 780.168 38,963 16,922 201.257 257.142 45.772 $886,578 $1,083,082 $293,000 $ 178.500 63,983 136,420 22.045 28 349 379,028 Net long term liabilities (note 6) 52,931 431,959 FUND BALANCES Surplus - to be used to offset taxation or user charges in 1986 (note 7) Capital operations not yet permanently financed (note 7) Reserves (note 8) Reserve funds (note 8) • 343,269 45,772 389,041 In addition, the expenditures, assets and liabilities with respect to the operations of the school boardsoutnd the County of Huron are not reflected in these financial statements accept to the extent that overlevies (underleviss) are reported on the "Consolidated Balance Sheet" as "other current lllbilitles" ("other currant assets"). • v) Trust Funds Trust funds and their related operations administered by the municipality are not consolidated, but are reported •ep ly on the "Trust Fund Balance Sheet and Statement of Continuity". (b) Basis of Accounting 1) Sources of financing and expenditures are reported on the accrual basis of accounting with the exception of principal and interest •charges on long term liabilities which are charged against operations in the period in which they are paid. The principal and interest charges are not accrued for the period from the dates of the latest instalment payments to the end of the financial year. ti) The accrual basis of accounting recognizes revenues as they become available and measurable; expenditures ars recognized as they are incurred and measurable as a result of receipt of goods or services and the creation of ,a legal obligation to pay. Hi) Fixed Assets The historical cost and accumulated depreciation for fixed assets are not recorded for municipal purposes. Fixed assets are reported as an expenditure on the "Consolidated Statement of Operations" in the year of acquisition. For those fixed assets financed or to be financed by the issue of long term indebtedness, the principal and interest on the long term indebtedness are also reported on the "Consolidated Statement of Operations" as they are paid. iv) Capital Outlay to be Recovered in Future Years "Capital outlay to be recovered in future years", which represents the outstanding principal portion of unmatuted long term liabilities for municipal expenditures or capital funds tranaferred to other organizations is reported on the "Consolidated Balance Sheet". 2. OPERATIONS OF SCHOOL BOARDS AND THE COUNTY OF HURON Further to note 1(a)(iv), the taxation, other revenues, expenditures and overlevies of the school boards and the County of Huron are comprised of the following: School Boards County Taxation Grants Requisitions Overlevtes for the year Overlevies - Beginning of year Overleviea - End of year $1,089,332 $410,215 48.031 1,089,332 458,246 1,089,185 458,158 147 8R 664 219 $ 881 $ 307 .49,543 109,989 The overlevies at the end of the year are reported as other liabilities on the "Consolidated Balance Sheet". 3. CONTRIBUTIONS TO UNCONSOLIDATED JOINT BOARDS (89.244) 460,261 34,059 (33,175) 363,957 253.270 $886,578• $1,083,082 APPROVED BY COUNCIL The accompanying notes are an integral part of these financial statements. TOWNSHIP OF STEPHEN CONSOLIDATED STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1985 Budget 1985 APPLIED TO: Current Operations General government Fire Conservation authority Protective inspection and control Roadways Street lighting Waterworks system Sanitary sewer system Garbage collection Garbage disposal Cemeteries Parks and recreation Planning and development Ontario Home Renewal Program Municipal drains Capital Roadways Parks and recreation Waterworks Fire Street lighting Municipal drains General government $ 183,100 66,781 18,186 16,000 313,085 1,900 168,427 98,043 10,000 55,000 860 175,032_ 26.- 282 Further to note l(a)(tii), the assets and liabilities of the unconsolidated joint boards have not been consolidated and are not reported on the "Consolidated Balance Sheet", except to the extent of the long term liabilities to be recovered from general taxation. The operations of these joint boards have also not been consolidated. The "Consolidated Statement of Operations" includes only the following contri- butions made by the municipality to these boards: Police Village of Dashwood - fire South Huron Recreation Complex Grand Bend and Area Fire Board Exeter and Area Fire Board Actual Actual Pinery Cemetery Board 1985 1984 $ 211,544 72,562 18,237 15,077 344,792 4,862 144,787 97,308 10,000 60,774 860 165,102 7,066 7,- 355 1,132,696 1.160,326 335,055 15,303 2,000 159,971 3.650 515.979 $ 17.9,324 68,407 16,996 14,134 310,253 3,493 155,697 84,750 9,181 46,600 1,000 162,114 519 21,457 2.642 1.076.567 289,011 232,823 11.305 1,770 34,845 14,385 6,504 9,037 1,369 85,- 968 69,546 4.202 3,242 431.835 332,172 Total funds expended for the year 1,648,675 1.592,161 1.408,739 Net appropriations to reserves and reserve funds (note 8) 108 826 MUNICIPAL FUND BALANCES - END OF YEAR To be used to oGfset taxation or user charges (note 7) Capital operations not yet permanently financed (note 7) TOTAL APPLICATIONS FOR THE YEAR 113.441 99,964 49.543 (89,244) (39,701) 1985 1984 $ 5,575 $ 7,125 • 2,530 2,876 11,526 6,977 10,264 9,442 860 . 1.000 $30,755 $27,420 The municipality is contingently liable for its share of the accumulated deficits to the end of the year for these boards. The municipality's share of the accumulated surpluses (deficits) of these joint boards is as follows: X SHARE Police Village of Dashwood ' 501! Police Village of Crediton 100% b) Approval of the Oeterio Municipal Board has been obtained for the pending issue of long term liabilities and for those commitments to be financed !roe revenues beyond the term of Council. e. RESERVES AND RESERVE FUNDS The total haleness of reserves and funds of $460,261 (1984 - $363,957) and $34,059 (1984 - $253,210) respectively, are made up of the following; Reeervee set aside for specific purpose Vor working capital For capital expenditures - roads - recreation - fire - local boards - water - garbage disposal by Council: $274,020 15,000 30,197 30,000 3,123 27,921 1985 1984 80,000 $239,264 46,851 14,283 20,000 10,331 33,228 Total R $460,261 $363,957 Be funds set aside tor specific purpose by Council: For capital expenditures - water $ 10,254 1___z___ Reserve funds set aside for specific purposes by Legislation, Regulations or Agreement: For loans under the Ontario Home Renewal Plan - 236,348 For water contingencies 19,486 14,840 For sewer contingencies 4,319 2,0X2 23.805 253.270 Total Reserve Funds $ 34,059 $253,270 Increase (Decrease) for the year 5(122,907) $ 99,964 Effective January 1, 1985, amendments to regulations require that the Onrar(n Home Renewal Program funds be accounted for as a trust fund and no longer as a reserve fund. This transfer of the fund balance had reduced the total reserve fund balances by $236,348, and is not reflected In the "Consolidated Statement of Operations". The 1985 transactions for this program are reflected to the financial statements for the trust funds of the municipality. 9. CHARGES FOR NET LONG TERM LIABILITIES Total charges for the year for net long term liabilities which are reported on the "Consolidated Statement of Operations" are es follows: 1985 1984 Principal payments including contribution's to the Ministry of the Environment Debt Retirement Fund $2,828 $ 890 Interest 7,020 5,618 - $9,848 $6,508 The charges for long term liabilities assumed by the school boards or by individuals in the case of the tile drainage loans are not reflected to these statements. 10. NON ACCRUAL OF INTEREST ON LONG TERM LIABILITIES No provision has been made In these financial statements for the acrru'l of interest on the net long term liabilities. Had this pr.ovlaton,been made, the municipal fund balances as at December 31, 1985 would have been d:•:rea.e, by $250 (1984 - $234). 11. CONTRACTUAL OBLIGATION - MINISTRY OF THE ENVIRONMENT In accordance with a service agreement, entered into by the municipality with the Ministry of Environment, the existing water and sewage systems are owned and operated by the Ministry. The municipality is obligated to meet all operating costs and repay long term liabilities related to these projects. Included in the "Consolidated Statement of Operattons••.are the 1985 charges from the Ministry - sewage $94,650; water $64,430. The "Consolidated Balanc Sheet" does not reflect any assets or liabilities pertaining to the water and sewage systema except to the extent of service chargee due to (or from) the Ministry. Information received from the Ministry as at March 31, 1985, indicates the following: Accumulated 1985 Debt Total Outstanding Net Surplus (Deficit) Chargee Long Term Ltabilltie Water - integrated projects $(26,000) $24,000 . $243,000 Sewage system 6,000 24,000 199,000 $(20,000) $48,000 $442,060 The operating surplus (deficit) and long term liabilities indicated ahoy( 1985 1984 are not reflected in the accompanying financial statements. $5,362 $(2,331) 12. COMPARATIVE FIGURES (623) (668) Certain 1984 comparative figures have been restated In order to conform v1tl .the financial statement presentation adopted for 1985. TOWNSHIP OF STEPHEN STEPHEN TOWNSHIP ARENA STATEMENT OF REVENUE AND EXPENDITURE FOR THE YEAR ENDED DECEMBER 31, 1985 $4,739 $(2,999) 4. TRUST FUNDS Trust funds administered by the municipality amounting to 5224,115 (1984- $1,057) have not been included in the "Consolidated Balance Sheet", nor have their operations been included in the "Consolidated Statement of Operations". - 5. INVESTMENTS • The total of investments of $10,254 reported on the "Consolidated Balance Sheet" at cost have a market value of $10,254 at the end of the year. 6. NET LONG TERM LIABILITIES 109,989 (33,175)' 76.814 • 11111 $1,757,501 $1,665,901 $1,585,517 The accompanying notes are an integral part of these financial statements. TOWNSHIP OF STEPHEN NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1985 1. ACCOUNTING POLICIES •) Basis of Consolidation • t) Consolidated Balance Sheet This statement reflects the assets and liabilities of the revenue fund, funds, the capital fund and includes the activities of all committees of Council end the following local board. and municipal enterprises and utilities which are under the control of council: Township of Stephen - Waterworks Centralia Centennial Community Centre Board Dashwood Community Centre Board Crediton Community Park Board Stephen Township Community Centre Board Stephen Township Arena Board Stephen Township Recreation Committee . Huron Park Recreation and Community Centre Board Dashwood Athletic Field Board Crediton and Huron Park Area Fire Committee Centralia Parka Board All interfund assets and liabilI4ies are eliminated with the exception of loans or advances between the reserve funds and other funds of the municipality. if) Consolidated Statement of Operations This statement reflects the consolidated sources of financing end expenditures of the revenue fund, reserves, reserve funds and the capital fund of the municipality and those local hoards and municipal enterprises and utilities described In note 1(7)(1). All interfund sources of financing and expendltur%e are /Urinated with the exception of interest income and expense arising from loans and advances between the reserve funds and other funds of the municipality. 111) Non -consolidated Entities For those local boards, municipal enterprises and utilities of the municipality which are not consolidated, the "Consolidated Balance Sheet" does not reflect'thetr assets or liabilities except to the extent of amounts due to or from those entities. The "Consolidated Statement of Operations" does not reflect their revenues and expenditures except to the extent of the municipality's contribution to those entities. Those entities which are not consolidated are is follows: Police Village of Centralia Police Village of Crediton Police Village of Dashwood Township of Stephen - Municipal Electrical Utility South Huron Recreation Complex Grand Bend and Area Fire Botlyd Exeter and Area Fire Board Pinery Cemetery Board iv) Accountfhg for County end School Board Transactions The taxation and other revenues with respect to the operations ,s 1 a) The balance of net long tern liabilities reported on the "Consolidated Balance Sheet" is made up of the following: Total long tern ltabilites incurred by the municipality including those incurred on behalf of school boards and outstanding at •u" ....t of rhe year amount to Of the long term liabilities shown above, the responsibility for payment of principal and interest charges has been assumed by school boards. At the end of the year, the outstanding principal amount of this liability 1s • Of the long term liabilities shown above, the responsibility for payment of principal and interest charges for tile drainage loans hes been assumed by individuals. At the end of the year, the outstanding principal amount of this liability is The total value of sinking funds and the balance to the Mtntatry of the Environment Debt Retirement Fund, which have been accumu- lated to the end of the year to retire the outstanding long tern liabilities included above amount to 1985 1984 $1,841,188 $2,146,071 1. (33,335) (64,905) (1,732,390)(2,015,957) (22,532) (19,437) Net long term liabilities at the end end of the year 5 52,931 $ 45,772 b) Of the 1Rt long term liabilities reported in (a) of this note principal payments are summarized es follows: From water charges 1986 to 1991 to 1990 1996 and 1995 . Thereafter TOTAL $14,704 $4,450 $33,777 852,931 c) Approval of the Ontario Municipal Board has been obtained for the long term liabilities In (e) issued In the name of the municipality. d) The Municipality is contingently liable for long ten liabilities with respect to tile drainage loans and to those for which the responsibility for the payment of principal and interest has been assumed by school boards. The total amount outstanding as at December 31, 1985 is 51,765,725 (1984 - $2,080,862) and is not recorded on the "Consolidated Balance Sheet". 7. MUNICIPAL FUND BALANCES AT THE END OF THE YEAR a) The balances on the "Consolidated Statement of Operations" of municipal • equity (deficit) of $(39,701) (1984 - $76,814) at the end of the year f are comprised of the following: 1985 1984 s For general reduction of taxation $ 26,572 For general reduction of water user charge% 113,872 For general' Increase of sewage user charges • (68,154) For general Increeee of garbage user charges For general reduction (increase) of street light user charges e For general reduction (increase) of recreation user charges Por benefitting landowners related to maintenance municipal drains to be recovered throdgh taxation or user chargee. (9,487) . (6,680) $106,698 59,444. (36,595) (12,059)' REVENUE Ice rental, concession booth and other EXPENDITURE Wages and benefits Heat and utilities Transfer to reserve Repairs and maintenance General Supplies Insurance Telephone 1985 1984 $100,009 $104,227 61,147 23,158 15,915 (0,547 10,488 7,244 6,123 706 55,814 25,586 7,000 11,154 10,975 12,182 4,031 692 135.328 127.434 DEFICIT FOR THE YEAR $(35,319) $(23,207) 1.• TOWNSHIP OF STEPHEN POLICE VILLAGE OF CENTRALIA BALANCE SHEET AS AT DECEMBER 31, 1985 ASSETS 1985 1984 _ UNRESTRICTED Accounts receivable - Township of Stephen $ 2,027 FUND BALANCES • Surplue to be used to offset taxation in 1986 Reserves 520,851 Y $ 2,027 $ 4,565 16.286 $ 2,027 520,851 STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1985 REVENiUE Transfer from reserve Taxation Rent Water rebate EXPENDITURE Capital Administration Roadways maintenance Street Lights Water frontage and connection SURPLUS (DEFICIT) FOR THE YEAR SURPLUS - Beginnlnfrof year SURPLUS - End of year TOWNSHIP OF STEPHEN POLICE VILLAGE OF DASHWOOD STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1985 •4. $16,286 3,')55 1,276 20,617 16,142 1,919 1,545 1,349 REVENUP, Taxation - Township of Stephen - Township of Hay Fire retainer fees - Township of Stepfien - Township of Hay 1,046 (155) Fire calls Ontario grants - roadways 8,353 (664) Grant - Township of Stephen w From beneflttitig landowners related to capital municipal drains to be recovered through taxation or user charges From benefitting landowners related to water areas to.he recovered through taxation or user charges From beneflttingrlandowners related to water ' areas to be recovered from the proceeds of long term liabilities • • • 4' 49.543 109.989 (84,400) (,296) (4,847) (9,959) - (15,920) (89,244) (33.175) • $(39701) 5 76,814 • EXPENDITURE Fire Street lights Roadways Administration Recreation R, • SUlPLUS FOR THE YEAR DF.FIrs.' 5 1 - ieginning of year SURPLUS (DEFICIT) - End of year More on next page 1 23,155 (2,538) 4,565 $ 2,027 $ - 3,037 1,511 164 4.714 782 1,- 592 200 2,574 2,140 2,425 $ 4,565 1985 1984 $ 6,853 5,118 5,000 3,000 1,913 953 22,837 5,220 4,281 3,221 2,247 175' 15,144 7,693 (2.331) $ 5,362 $ 6,624 4,916 5,000 3,000 2,9•'5 490 600 23,665 ').195 4,163 •.905 2.866 750 14,379 9,286 (11,617) -$(1.31I)